Increase ... to hopefully become the dominant firm in a particular industry. May allow them to increase profits, or set prices to their benefit.
Market share
1 of 8
Increase ... through larger brand recognition and more sales outlets. These could be in the same country or even allow a firm to gain a presence abroad.
Sales
2 of 8
The firm is able to exploit its increased size and to lower long-run average cost. By lowering LRAC and approaching the minimum efficient scale, the firm is moving closer to productive efficiency.
Economies of scale
3 of 8
Some ... will seek to grow their business so that they can satisfy their desire to run a successful company, and see share prices rise (if they have received shares)
Managerial ambition
4 of 8
A firm aims to maximise ..., and may be able to achieve this through expansion, setting price or benefiting from lower costs of production.
Profit
5 of 8
Gain ... as to prevent potential takeovers by larger predator businesses, also allowing them to survive any major downturn in economic performance.
Power
6 of 8
Firms may wish to develop a new part of their business, and they feel they can buy an existing market leader and with it its ... in the market.
Expertise
7 of 8
A firm may have revenue that it doesn't want to class a profit (due to corporation tax) and so will use them to acquire another business.
Opportunity
8 of 8
Other cards in this set
Card 2
Front
Increase ... through larger brand recognition and more sales outlets. These could be in the same country or even allow a firm to gain a presence abroad.
Back
Sales
Card 3
Front
The firm is able to exploit its increased size and to lower long-run average cost. By lowering LRAC and approaching the minimum efficient scale, the firm is moving closer to productive efficiency.
Back
Card 4
Front
Some ... will seek to grow their business so that they can satisfy their desire to run a successful company, and see share prices rise (if they have received shares)
Back
Card 5
Front
A firm aims to maximise ..., and may be able to achieve this through expansion, setting price or benefiting from lower costs of production.
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